SHARJAH ISLAMIC BANK INTRODUCE ISLAMIC EQUITY PORTFOLIO

The bank anticipates that the size of the portfolio could reach up to AED 50 million. The initial offering period began on the 13th of June 2005, and will run for a duration of one month, up until July 13th 2005. However, this offering period may be shortened and this will be at the discretion of the portfolio agent. Eligible investors include all UAE Nationals and expatriate residents of the UAE, as well as various institutions which are based in the United Arab Emirates.

The initial offer price has been set at AED 10,000 per unit, which is the minimum, with a maximum subscription of AED 100,000. Alternatively, subscriptions by institutions must have a minimum value of AED 100,000 and a maximum value of AED 1 million. The duration of the fund is 3 years, and this period is extendable by a further 2 years.

The Islamic Equity Portfolio aims to offer investors access to investment opportunities in equity markets within the UAE, GCC and some countries within the Middle East. In addition, the portfolio aims to create capital gains through the active trading of Shariah compliant shares of listed companies within the target markets, while achieving capital growth over the medium-term with the possibility of income distribution.

"Since 2001, an unprecedented level of investment capital has flowed into listed regional equities in pursuit of capital growth opportunities. The impressive performance of the GCC and other middle eastern equity markets has been supported in large part by buoyant oil prices, growth in read GDP, impressive corporate earnings, regional government spending and a repatriation of investment capital to the GCC region", comments by Mr. Hussain Al Qemzi, CEO, Sharjah Islamic Bank.

Mr. Qemzi continues, "During this period, GCC equity markets have produced superior returns when compared to leading global and emerging market equity indexes, demonstrating a low correlation to global equity market performance. As such, GCC markets continue to demonstrate the potential for medium to long-term growth, combined with the benefits of a low level of risk in a tax-free environment".

Since the bank changed its corporate identity, Sharjah Islamic Bank has formulated, and carried out, an aggressive strategy aimed at seeking out the most viable investment opportunities in the region, with the ultimate objective of maximizing growth, profits and shareholders return on investment. A strategy that has set the bank apart from its counterparts in the banking sector, while ensuring that Sharjah Islamic Bank provide the best possible service to shareholders, investors and customers alike.


About SIB

National Bank of Sharjah was established in 1975 in order to provide commercial banking services to Sharjah’s residents. As part of the banks conversion from conventional to Islamic banking practices, they announced on the 2nd February 2005 that the bank would now be called Sharjah Islamic Bank. SIB has enjoyed an accelerated rate of growth and has contributed greatly to the progress and development of both Sharjah and the UAE.